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GATT Officials Say Impasse May Scuttle Talks : Trade: The negotiations seem close to collapse because of a deadlock over farm subsidies. The meetings may adjourn before rules on governing services are agreed upon.

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TIMES STAFF WRITER

With international trade talks at an impasse over agricultural subsidies, the negotiations appeared close to collapse Tuesday.

Even if they manage to make a breakthrough on agriculture, which is unlikely, it now looks as though it will be impossible for negotiators to meet this week’s deadline to reach agreement on some of the most ambitious parts of their agenda.

In particular, a senior U.S. official said, the talks probably will adjourn without andagreement on rules to govern trade in services--businesses such as transportation, banking, insurance and telecommunications that are expected to generate most of the world’s economic growth in coming years.

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The official, speaking on the condition of anonymity, said he hoped that negotiations in that area might continue into next year.

Despite their increasing importance, services are not covered under the existing rules of the 43-year-old international trading agreement known as the General Agreement on Tariffs and Trade (GATT). As a result, U.S. service firms have encountered significant difficulties in expanding into developing countries.

“I have serious doubts that many of the developing countries are prepared to accept real commitments to open up their service areas,” the official said. “It certainly won’t solidify this week.”

Those countries are not likely to enter an agreement on services unless they are given an opportunity to sell more of their agricultural products on world markets in return.

Striking an agreement on agriculture remains the most serious and immediate problem confronting negotiators. The United States and other agricultural exporters have demanded that European countries reduce the subsidies that they pay their farmers--subsidies that make it possible for European growers to far undercut the prices that other nations’ farmers ask.

The 12-nation European Community has offered to make modest reductions in some of its subsidies, but the United States has denounced that offer as falling far short of the mark.

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With neither side budging, some officials have begun to warn that the ambitious talks, which they had hoped would produce an agreement that could add $4 trillion to world economic growth over the next decade, would instead fall apart.

“I feel that we need substantial breakthroughs in the next 24 hours in a number of key areas--including, in particular, agriculture--if this meeting is to end with a package of results truly meaningful for all participants in these negotiations,” said Uruguayan Foreign Minister Hector Gros-Espiell, chairman of the negotiations.

The talks, which began four years ago, are scheduled to conclude this week. BUSH RELAXES STANCE

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Farming in the U.S. and Europe Compared to the United States, the European Community has more farmers who cultivate less land and receive higher subsidies, as the following comparisons show: Number of farmers, in millions: Europe: 9.6 United States: 2.9 Land under cultivation, in millions of acres Europe: 331 United States: 1,065 1989 agricultural subsidies in billions of U.S. dollars Europe: 93 United States: 46 Source: Organization for Economic Cooperation and Development, European Community via AP

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